Problem4:Chapter 12 - Intangible Assets 2

The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2017. Complete the chart below by writing the journal entry(ies) needed at that date to record the transaction and at December 31, 2018 to record any resultant amortization. If no entry is required at a particular date, write "none needed."

4.1: Minton paid Grand Company $2,200,000 for the exclusive right to manufacture a new CBD-laced catnip in the US. The license lasts for 10 years.

On Date of TransactionOn December 31, 2018

4.2. On June 30, 2018, Pratt Co. paid $128,000 to research a new ice cream flavor (snozzberry). They plan to apply for a patent on the flavor in the near future.

On Date of Transaction On December 31, 2018

4.3. On August 1, 2018, Pratt Co. perfected the ice cream flavor (the snozzberries taste like real snozzberries!). They paid $18,000 for legal and administrative fees related to filing the patent, which was awared on August 31, 2018 and is good for 20-years.

On Date of TransactionOn December 31, 2018

4.4. On January 1, 2019, Pratt Co. successfully defended the snozzberry ice cream flavor patent. The cost of the legal defense was $1.3 million.

On Date of TransactionOn December 31, 2019

4.5. On January 1, 2020, Pratt Co. spent $415,000 in an unsuccessful defense of the snozzberry ice cream flavor patent. After the loss of the patent rights, the new value of the patent was determined to be $5,000.

On Date of TransactionOn December 31, 2020